Market Insights Consumer DIY & Hardware Store

Hardware & Building Materials - Indonesia

Indonesia

In Indonesia, the Hardware & Building Materials market generates a significant revenue of €36.04bn in 2024.
It is projected to experience a steady annual growth rate of 2.22% (CAGR 2024-2029).
Comparatively, in China leads the global market with a revenue of €482bn in 2024.
When considering the population, the per capita revenue in Indonesia amounts to €128.80 in 2024.
The demand for hardware and building materials in Indonesia is steadily growing due to the country's booming construction industry.

Key regions: Indonesia, Turkey, Japan, China, Germany

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Región

Comparación de regiones

Moneda

Analyst Opinion

The Hardware & Building Materials Market in Indonesia has seen a stagnant growth rate due to factors such as low consumer demand and economic instability. Despite the convenience of online DIY & hardware stores, the market has not experienced significant growth in recent years.

Customer preferences: Consumers in Indonesia are increasingly valuing convenience and efficiency, leading to a rise in demand for online shopping and e-commerce platforms. This trend is also reflected in the Hardware & Building Materials Market within the DIY & Hardware Store Market, with more individuals turning to online channels for their home improvement needs. This shift is driven by factors such as time constraints and the desire for a wider product selection, as well as the rising popularity of home renovation and DIY projects among younger generations. As a result, DIY & hardware stores are adapting to this trend by expanding their online presence and offering delivery services.

Trends in the market: Recent years have seen a significant increase in demand for eco-friendly and sustainable building materials in the Hardware & Building Materials Market within the DIY & Hardware Store Market in Indonesia. This trend is driven by the increasing awareness of environmental issues and government initiatives promoting sustainable construction practices. As a result, there has been a rise in the availability of eco-friendly products, such as recycled building materials and energy-efficient appliances, in hardware stores. This trend is expected to continue as consumers become more conscious of their environmental impact and seek out sustainable options for their DIY and home improvement projects. This will require industry stakeholders to adapt and invest in more sustainable product offerings to remain competitive and meet customer demands.

Local special circumstances: In Indonesia, the Hardware & Building Materials Market within the DIY & Hardware Store Market is heavily influenced by the country's unique geography, with its vast archipelago having varying climate and topographical conditions. This results in different construction and maintenance needs, leading to a diverse range of products and services being offered in the market. Additionally, cultural preferences for DIY home improvement and reliance on traditional building methods also play a significant role in shaping the market. Moreover, government regulations on building codes and safety standards impact the demand for certain types of hardware and materials in the market.

Underlying macroeconomic factors: The Hardware & Building Materials Market within the DIY & Hardware Store Market in Indonesia is primarily impacted by macroeconomic factors such as economic stability, infrastructure development, and government fiscal policies. A stable economy and favorable government policies create a conducive environment for growth in the construction sector, which drives demand for hardware and building materials. Additionally, the implementation of infrastructure projects, both public and private, further boosts the demand for these products. However, fluctuations in global economic trends and political instability can adversely affect market performance. Moreover, any changes in tax policies and trade regulations can also impact the market, as Indonesia is a major importer of building materials. The current focus on sustainable and eco-friendly construction practices also influences the market, as consumers are increasingly opting for environmentally-friendly building materials.

Methodology

Data coverage:

Data encompasses B2C enterprises. Figures are segmented by product type and consist of the following: Paint, Wallpaper & Supplies, Tools & Machines, Hardware and Building Materials, Lawn & Garden, Heating & Cooling, Bathroom Hardware, and Floor Covering.

Modeling approach / Market size:

Market sizes are determined by a top-down approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use national statistical offices, international institutions, in-house market research, and resources from the Statista platform. Next we use relevant key market indicators and data from country-specific associations such as product value, import value, and export value to determine domestic supply. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are turnover indices, GDP per capita, and consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.